MicroStrategy has crossed a significant milestone, amassing over 450,000 Bitcoin after seizing a market dip with a $243 million purchase.
The company’s latest acquisition was confirmed by its founder and chairman, Michael Saylor, in a Jan. 13 update on X (formerly Twitter). MicroStrategy acquired the Bitcoin at an average price of $95,972 per coin, bringing its total investment in BTC to $28.2 billion, with an average acquisition price of $62,691.
Strategic Purchase Amid Market Correction
The purchase occurred during a weeklong market pullback starting Jan. 7, during which Bitcoin dipped below the $100,000 psychological threshold. According to market data, this correction presented an opportunity for MicroStrategy to expand its Bitcoin portfolio further.
Other market players, such as crypto hedge funds, also capitalized on the dip, contributing to Bitcoin reserves on exchanges falling to a near seven-year low as of Jan. 13. Analysts suggest this reduction in available Bitcoin on exchanges could lead to a “supply shock,” potentially driving up prices as demand intensifies.
Bitcoin’s Macroeconomic Challenges
Bitcoin recently achieved a historic high of $100,000 on Dec. 6, 2024, shortly after Donald Trump’s win in the U.S. presidential election. However, macroeconomic factors have since taken center stage in influencing Bitcoin’s price.
According to Bybit Research, the cryptocurrency market remains reactive to broader economic conditions, particularly the Federal Reserve’s monetary policy. Analysts noted that Bitcoin’s decline below $92,000 was triggered by stronger-than-expected U.S. labor market data, as indicated by the Jan. 9 Job Openings and Labor Turnover Survey (JOLTS).
“Macroeconomic indicators, such as robust employment numbers, suggest the possibility of interest rate hikes, reducing the appeal of cryptocurrencies as investments,” said Ryan Lee, chief analyst at Bitget Research.
Delayed Hopes for Rate Cuts
Hopes for a potential rate cut by the Federal Reserve have been pushed back, with current market expectations forecasting the first reduction to occur on July 30, according to the CME Group’s FedWatch tool.
Despite these macroeconomic headwinds, institutional players continue to exhibit confidence in Bitcoin’s long-term potential. On Jan. 13, Nasdaq-listed Semler Scientific disclosed the purchase of 237 BTC for $23.3 million at an average price of $98,267.
MicroStrategy’s continued commitment to accumulating Bitcoin highlights a growing trend among institutions viewing the cryptocurrency as a strategic asset, even amid broader market uncertainty.
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